I saw that, but if I get the new Kindle, it would be the 3G version that's $50 more. I have WiFi at home, but I really like being able to get new books anywhere, anytime.

It also sounds like both new Kindle versions (WiFi and 3G) have some nice upgrades (twice the storage space, and a month-- a MONTH-- between battery charges if you leave the wireless off. Also, the buttons look much better in terms of use.

The price cut is almost certainly to stay competitive with the $500 multi-purpose and much sexier iPad. But Amazon is just passing on the pain, because this means the little companies who were trying to make cheap eReaders can't compete.

I guess the new $99 eReaders are putting the squeeze on Amazon. This might even put a dent in the iPad sales, especially since I've seen a new set of advertisements emphasizing that you can read the Kindle in direct sunlight.

And Kindle is "closed" in the sense that Kindle books have DRM and you can't read a Kindle book with anything but a Kindle or a Kindle app. I can't put non-Kindle DRM'd books on my Kindle, but I certainly have books I bought without DRM (from Fictionwise and O'Reilly) on my Kindle-- not to mention dozens of free ebooks.

Re, the cheaper eReaders. I see them mostly going under, actually, because it's so hard to make money with a low-end e-ink device unless you have big sales. With Nook and Kindle getting cheaper and cheaper, the little guys are getting squeezed. The maker of the Cool-er eReader already filed for bankruptcy.

This certainly explains the reported shortages of Kindles that have drifted into the news. Amazon clearly didn't want to get stuck holding the bag on a bunch of K2s that they would have a hard time selling once the K3 got announced.